VSE Corp. / VSEC

About VSE Corp.

2550 Huntington Ave., Alexandria, Va. 22303
www.vsecorp.com | 703-960-4600 | Founded: 1959

Industry: Government And Professional Services | Category: Public Companies

After a slight revenue decrease in the first quarter, VSE finished 2006 strong, reporting $7.8 million in profit on revenue of $363.7 million, up from a profit of $6.2 million on revenue of $280.1 million in 2005. The company said growth last year was largely due to subcontract revenue associated with work on the Army Equipment Support Program, which refurbishes equipment and develops combat vehicles.
VSE also credited its increased income to the Army's Tanker Ballistic Protection System Program, which overhauls tanker trucks, and continued growth in its BAV division, which helps the Navy sell, lease or give away old ships. Much of VSE's work is done through fixed-price contracts, which tend to have better profit margins than cost-plus-fee jobs, in which contractors are reimbursed for the cost of labor and materials, plus given a fee for overhead and profit.
New contracts awarded to VSE in 2006 represent potential revenue of up to $206 million, said chairman and chief executive Donald M. Ervine. He said the company is also looking at acquisition opportunities that will support continued growth in 2007.
In September, VSE was the prime contractor on a project to reactivate four guided-missile destroyers for the Taiwanese navy. In November, it was one of 15 companies to win a multibillion-dollar Army contract that could continue for 15 years.
The company announced last month that its board had approved a 2-for-1 stock split for shareholders of record on June 11.

Chairman: Donald M. Ervine

2006 Financial Data

Revenues: $363,734,000 | Net Income: $7,789,000
Asssets: $98,535,000 | Earnings Per Share: $3.21
Stockholder Equity: $38,236,000 | Annual Dividend: $0.27
Total employees: 850 | Local employees: 350